1. Field of the Invention
The invention relates to the distribution of intellectual/intangible property generally and more particularly to a system and method for brokering the electronic transfer of intellectual/intangible property.
2. Discussion of the Background
The current system for the sale and distribution of intellectual/intangible property is characterized by the delivery of physical media imprinted with a copy of the intellectual/intangible property. As used herein the terms “intellectual property” and “intangible property” are interchangeable and are defined as digital information or content. Examples include, but are not limited to digitally stored music, film, video, text and photographs.
An elaborate distribution chain is employed to move physical media from the factory to the distributor to the retail store. During the 1970s this model was updated by storing digitized content on central computers and then downloading the content to kiosks for copying onto media. This client/server model is characterized by a dominant central server and subordinate client kiosks. An updated version of the client/server model utilizes the Internet with the web server dominating the model.
The associated business process mirrors the hierarchical and centralized technology. Participation in the client/server business process requires permission from the central authority. Intellectual property content storage is limited to central authority-designated servers. The current business processes have large capital requirements, resulting in oligopolistic organization of the distribution of music and movies. The resulting business organization has reduced revenue to the creators of intellectual property and reduced choice at the retail level.
What is needed is a method for the sale and distribution of intellectual property that reduces capital requirements, increases revenue to the creators of intellectual property, and increases choice at the retail level.
Retail distribution of dry goods is a complex network of transportation, warehouses and intermediary organizations that efficiently deliver goods from multiple manufacturers to retail stores for customer selection and purchase. This complex system presents to the customer, in one retail location, a multitude of choices from a wide variety of sources.
Likewise, digital distribution systems of intellectual property content have the potential to offer the same multiplicity of choices from a wide variety of sources to the retail customer. Presently however, the current method of digital distribution has come to mean the download and sale of intellectual property from a particular web site to the consumer's home PC. On Line music sales web sites generally distribute inventory from their own sites, or partner sites through hard coded html links. In store, retail point-of-sale digital distribution through in store customer kiosks applies a similar model. Content available through the kiosk is limited to content hosted by the kiosk vendor. These methods generally preclude the possibility of discovery, bundling and cross selling from unknown suppliers.
The current methods implement tight coupling of content supply with the digital distribution channel, whether the channel is a web site or in-store kiosk. These methods reflect their underlying client/server architecture with preprogrammed, hard coded links to known, pre-approved sources and partners. This architecture requires intervention of Information Technology personnel to integrate new sources. This business method requires explicit pre approval for integration of other sources.
What is needed are systems that decouple the content source from the digital distribution channel. This requires new, open, non-client/server architecture, business process and data networks. Developing this new type of open data network and business process is a significant technical, legal and social issue. Digital content comes on a variety of computer equipment, each with different operating systems, programming languages, communication protocols, and a proprietary interface into their system. The digitized content itself comes in a variety of codec, encryption, compression and digital rights management schemes. Legally, each content owner has different pricing, usage and business rules. Delivery to client tier technology, whether a consumer home PC or a retail point-of-sale kiosk, includes an equally broad array of computer equipment, operating systems, and browsers.